How to challenge the validity of a debt?

[Sherrie]

Last month, when I pulled my credit report I noticed that there is a new collection account on it!

I always pay by bills on time, and never missed a payment or let any due payment go unpaid.

How to challenge the validity of this debt?

[clara]

Dispute it!

If it’s not yours why not dispute it?

[Judy V]

Challenging the validity of a debt

Challenging the validity of a debt is really simple, but please note that you must act fast (within 30 days of the date you received the credit report) or else you will lose your chances to dispute the debt!

1. Start by searching your own records for any information related to the alleged debt. You may not find anything, but you may also find that this is a debt you already paid!
2. Send a Debt Validation Letter to the debt collector via certified mail, return receipt requested, so you can document the debt collector received your correspondence. Keep copies of your letter and all enclosures.

The letter should outline your requests for proof of the debt. You can ask for proof that the debt collector does in fact hold the debt now, a statement regarding how much principal you owe plus any fees and interest that have been added and a copy of the contract you originally signed saying you will be responsible for payment of the debt.

Additionally, request contact information for the original creditor so you can call or write to them if necessary.


3. When you get a response from the debt collector, evaluate it:
   • If the debt collector can validate the debt, you may have to pay it or risk damage to your credit.
   • If you can prove that the debt has already been paid and the debt collector is misinformed, send copies of your own paperwork with proof of payment to back up your story. Request that they remove the item from your credit report promptly.
   • If the debt collector cannot provide proof that you owe the debt, write another letter, telling them they since could not validate your debt – they DO NOT have any legal right to attempt to collect this debt from you, and thus they need to remove the listing from your credit report.

4. If the debt collector fails to respond to the debt verification letter and/or fails to remove the item from your credit report you may have to dispute the item yourself with the credit bureaus (see Credit Report Disputes for more information). Include all previous correspondence with the debt collector in the dispute letter.

Good luck

[Author]

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